In a Claims-Made General Liability policy, what is the event that "triggers" coverage?

• A. Occurrence
• B. Claim
• C. Incident
• D. Event

Answer: (B)

In a Claims-Made General Liability policy, the event that triggers coverage is the claim being made against the insured. This type of policy is structured to provide coverage for claims that are reported to the insurer during the policy period, regardless of when the actual event or occurrence took place, as long as it happened after the policy’s retroactive date.

When a claim is made, it allows the insurer to determine its liability and initiate the claims process, assessing what coverage is available under the terms of the policy. This mechanism is vital for insureds, as it emphasizes the importance of reporting claims promptly within the effective period of the policy to ensure that coverage remains available.

Other options, while they relate to broader aspects of liability policies, do not specifically represent the triggering point for coverage in this context. Occurrences may happen at any time, but if a claim related to an occurrence isn’t made during the active policy period, coverage may not apply. Thus, the clarity of the triggering event being a claim aligns specifically with the structure and intent of Claims-Made coverage.